The government of Zambia and Angola have signed a US $5bn deal to construct an oil pipeline that will pass through the two countries.
Angola’s minister of Mineral Resources and Oil, Diamantino Azevedo, confirmed the reports and said the memorandum of understanding establishes the basis for cooperation in the oil and gas sector.
The Minister added that Zambia has already indicated the value in a preliminary phase of studies with Angola having only established the conditions to start discussing the project. The pipeline will see enhanced trade in oil, development of petroleum refinery infrastructure and capacity building for Zambia.
“The installation of the new delivery system is vital to meet the current demand in Zambia and the sub region and also prepare for consumption in the long term. Zambia currently has one pipeline which transports its petroleum products from the port of Dar el salaam in Tanzania to Indeni Refiner in Ndola,” said Diamantino Azevedo.
He also said that the memorandum has advantages for both countries, as it facilitates all types of projects in the sector, noting that Zambia has no access to the sea, which makes it difficult to import oil and its derivatives, which is a factor in Angola’s favour.
He further said that the government will announce an equity partner in the Indeni refinery before the end of November in order to recapitalize the refinery plant. The signing ceremony was witnessed by Angolan Ambassador to Zambia Balbina Dias Da Silva and Zambian Ambassador to Angola Laurence Chalungumana among others.